According to Mortgagee Letter 2008-26, mortgagees may now begin using Fannie Mae/Freddie Mac Consolidation, Extension and Modification Agreement Form 3172 on New York FHA refinance transactions.  The form, however, does need to be revised before it can be used.  Instructions on how to revise the form are included in the mortgagee letter.  The mortgagee letter also amends HUD Handbook 4165.1 REV-2, Paragraph 4-12, by removing the sentence that states Fannie Mae/Freddie Mac Form 3172 should not be used on NY FHA refinance transactions.  Form 3172 may be found here.